Premji Invest — the family office of Wipro founder Azim Premji — is reportedly in advanced talks to acquire a majority stake in Bank of Baroda (BoB) subsidiary Nainital Bank.
According to an Economic Times report, Premji Invest has signed a term sheet after completing due diligence, however, a final decision is yet to be taken. A term sheet is non-binding agreement that outlines the terms and conditions of a deal.
The deal would likely value Nainital Bank, which is based in Uttarakhand, at Rs 800 crore, the report cited sources as saying.
Premji Invest owns non-banking finance company TVS Credit and this will be the first banking play for the family office of the Wipro founder.
BoB is expected to divest its entire 98 percent shareholding in Nainital Bank, the report said, adding in the first tranche around 51 percent of the share would be sold.
Moneycontrol couldn’t verify the report independently.
While BoB didn’t respond to ET queries, Premji Invest refused to comment.
Nainital Bank was founded in 1922 to meet the banking requirements of the local population. In 1973, the Reserve Bank of India directed Bank of Baroda to oversee the operations. The bank operates 168 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan.
The bank provides RTGS, NEFT, RuPay ATM cum debit card, internet and mobile banking to its customers.
Azim Premji has been on the lookout for investments in fintechs and startups, and earlier this year received an in-principle approval to set up an investment fund at GIFT City, a Bloomberg report said.
On April 29, Bloomberg reported that Premji Invest is poised to escalate its investments in artificial intelligence (AI) companies. The firm is also refining its in-house AI investment tools, a senior executive said.
As reported by Moneycontrol, the investment fund is also considering an investment of $50-$70 million in the Australian graphic design platform Canva. Sources familiar with the matter said the potential investment would be part of Canva's recent secondary market sale, during which shares worth $1.6 billion were traded among existing and new shareholders, valuing the company at $26 billion. It is anticipated that Premji Invest may acquire shares offered by employees as part of this sale.
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